Lisa Stevenson (Parisi Tax) considers the relative merits of having a corporate structure or an existing partnership structure and and what would be the tax impact of any changes.
Question
My client is a partnership which is trading. There are six partners (two main partners and four junior fixed-share partners) all of which are companies. The partnership was set up this way – with companies as partners rather than the individuals themselves – in 2011 to avoid the 50% income tax rate. The owners of the two main partner companies (‘the founders’) are considering the future of the business which they believe may involve a sale to a third party or possibly an investment by a third party to fund the expansion of the business. The founders believe that for commercial reasons it would be easier if...
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Lisa Stevenson (Parisi Tax) considers the relative merits of having a corporate structure or an existing partnership structure and and what would be the tax impact of any changes.
Question
My client is a partnership which is trading. There are six partners (two main partners and four junior fixed-share partners) all of which are companies. The partnership was set up this way – with companies as partners rather than the individuals themselves – in 2011 to avoid the 50% income tax rate. The owners of the two main partner companies (‘the founders’) are considering the future of the business which they believe may involve a sale to a third party or possibly an investment by a third party to fund the expansion of the business. The founders believe that for commercial reasons it would be easier if...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
